Kuala lumpur: Baitulmal institutions must evolve from their traditional role of collecting and distributing aid into generative institutions that strengthen Islamic social finance and create sustainable economic opportunities for the community, Minister in the Prime Minister's Department (Religious Affairs) Dr. Zulkifli Hasan said today. Speaking at the launch of the National Baitulmal Convention (KBK) 2026 at the Al-Muktafi Billah Shah Hall, Universiti Sultan Zainal Abidin (UniSZA), he emphasized the need for Baitulmal to transition from merely providing subsistence assistance to facilitating sustainable economic growth.

According to BERNAMA News Agency, Zulkifli outlined a strategic shift from poverty alleviation to economic empowerment, underscoring the importance of integrating zakat, waqf, and Islamic micro-financing to transform recipients into contributors. He advocated for the restructuring of Baitulmal funds through these Islamic social finance instruments to enable business and skills development.

The minister also highlighted the role of digital transformation, suggesting the adoption of financial technology, artificial intelligence, and blockchain to enhance transparency and governance in Baitulmal operations. This digital shift aims to prevent aid duplication and strengthen public trust, encouraging greater contributions through official channels.

In addition, Zulkifli urged the strengthening of waqf initiatives by fostering collaboration between public, private, and religious sectors. He proposed leveraging corporate instruments like waqf sukuk and investment funds to channel investments into projects with long-term social impacts, aligning with Environmental, Social, and Governance (ESG) principles.

Zulkifli underscored the benefits of digital platforms, citing a significant increase in zakat collections in the Federal Territories and a rise in online and QR code-based transactions. He noted that digital tools have also enhanced waqf governance, with cash waqf contributions seeing substantial growth.

Furthermore, Malaysia marked a milestone in 2024 with the introduction of the world's first accounting standards specifically for Baitulmal, zakat, and waqf institutions, aimed at improving financial reporting and governance within these entities.